What is Terra?
Terra (LUNA) is a public blockchain protocol that was born out of Terra Classic. The Terra Classic blockchain was home to the algorithmic stablecoin TerraClassicUSD (UST). However, in May 2022, UST faced a bank run that led to its devaluation and consequently crashed the collateralized LUNC token to nearly zero. This event triggered the launch of a new chain, resulting in the creation of Terra and Terra Classic. You can read a detailed analysis of the Terra Classic crash here.
Launched in January 2018, Terra Classic was created to provide fast and affordable settlements through its UST stablecoin. It aimed to combine the stability and wide adoption of fiat currencies with the censorship-resistance of Bitcoin (BTC). Terra Classic offered stablecoins pegged to various currencies, including the U.S. dollar, South Korean won, Mongolian tugrik, and the International Monetary Fund's Special Drawing Rights basket of currencies.
Terra blockchain continues the legacy of Terra Classic, but without the UST stablecoin. It will continue building with the help of the LUNA community, affectionately called “LUNAtics,” and evolve the world-class UX and UI that brought Terra Classic up to second place in total value locked (TVL) at its peak. Many DApps have agreed to migrate to Terra to continue their functionality.
Terra was founded by Daniel Shin and Do Kwon in January 2018. Their goal was to drive the rapid adoption of blockchain technology and cryptocurrency through a focus on price stability and usability. Kwon became the CEO of Terraform Labs, the company behind Terra.
Shin, the co-founder and former CEO of Ticket Monster, also known as TMON, a major South Korean e-commerce platform, was instrumental in the development of Terra. He later co-founded Fast Track Asia, a startup incubator that helps entrepreneurs build fully functional companies.
Kwon, on the other hand, founded and served as CEO of Anyfi, a startup providing decentralized wireless mesh networking solutions. He has also worked as a software engineer for Microsoft and Apple.
Terra 2.0 aims to preserve the Terra ecosystem with hundreds of developers working on different decentralized applications. The LUNA token will be airdropped across Luna Classic stakers, holders, residual UST holders, and essential Terra Classic app developers. Terra Foundation Labs' wallet was removed from the airdrop event, making Terra a fully community-owned chain.
The airdrop will be carried out in two snapshots, one before the Terra Classic crash (May 7) and one after it (May 27). The eligibility for the airdrop is as follows:
- Holding Luna Classic (LUNC) (including staking derivatives) and less than 500k aUST (UST deposited in Anchor) on the May 7 snapshot.
- Holding Luna Classic (LUNC) (including staking derivatives) and UST on the May 27 snapshot.
At Genesis, 30% of the LUNA airdrop will be immediately available to pre-attack users with wallets that had less than 10k LUNA (including staking derivatives) or deposited UST in Anchor, and post-attack users with any quantity of LUNA (including staking derivatives), UST, or both.
Additionally, vested LUNA distributed during the airdrop will be automatically staked to Terra validators. Users can change their delegator and will earn staking rewards on their vested LUNA but are subject to a six-month cliff.
In conclusion, Terra 2.0 is the next evolution of the Terra project, building on the lessons learned from the collapse of Terra Classic and the UST stablecoin. The focus is now on preserving the Terra ecosystem and building a robust platform with the help of the LUNA community. The airdrop of LUNA tokens to eligible Terra Classic stakeholders and users is a positive step towards increasing community participation and ownership in the project. With hundreds of developers working on different decentralized applications, Terra has the potential to become a major player in the blockchain space and drive the rapid adoption of cryptocurrency and blockchain technology.
The investment information, comments, and recommendations provided here do not fall under the scope of investment consulting. Therefore, making an investment decision based solely on the information and comments provided here may not yield results that meet your expectations.
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